The EUR/USD pair rallied in the short term as the Dollar Index plunged after its strong growth. The pair was traded at 1.0714 at the time of writing and it seems determined to retest the upside obstacles.
Fundamentally, the USD took a hit from the ADP Non-Farm Employment Change which came in at 128K versus 295K estimated and compared to 202K in the previous reporting period, while the Factory Orders rose by 0.3% less versus 0.8% expected. Only the Unemployment Claims indicator came in better than expected at 200K in the last week versus 210K forecasts.
EUR/USD Bullish Momentum!
The EUR/USD pair found support on the 1.0641 and now it tries to approach and reach the 1.0757 static resistance again. The price ignored the weekly pivot point of 1.0690 and the 1.0697 and it challenges the upper median line (uml).
Technically, after dropping below the uptrend line, the EUR/USD pair was expected to drop. Still, DXY's sell-off forced the pair to come back higher. The 1.0757 and 1.0786 levels represent strong upside obstacles.
EUR/USD Prediction!
Further growth followed by a valid breakout above the 1.0786 level may activate a larger upwards movement and could bring new long opportunities.
On the other hand, staying below 1.0757 - 1.0786 and making a new lower low, a valid breakdown below 1.0641 may signal a strong drop.
